Shares of Ford Motor Co. (NYSE: F) were on an upswing in pre-market trading on Thursday even as the automobile major’s EV business incurred an operating loss of $2.1 billion in 2022 and the company announced some key changes to its financial reporting.
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The company stated that instead of reporting its results geographically, it will now report its business segments as they focus on different automotive customers. As a result, it will report its results by Ford Blue (iconic gas, hybrid vehicles), Ford Model e (breakthrough EVs), and Ford Pro (commercial products, services).
Ford’s operating losses in the EV business were offset by a $10 billion operating profit when it comes to its internal combustion and fleet businesses. The company reiterated its outlook for FY23 and expects adjusted EBIT to be between $9 billion and $11 billion with adjusted free cash flow anticipated to be about $6 billion.
Ford has projected segment-wise EBIT in FY23 to be around $7 billion for Ford Blue, a “modest improvement from last year; a full-year loss of about $3 billion for Ford Model e; and EBIT approaching $6 billion for Ford Pro, nearly twice its 2022 earnings.”
The company also reaffirmed its margin targets of 10% for adjusted EBIT and 8% for Ford Model e in late 2026.
Analysts remain sidelined about F stock with a Hold consensus rating based on four Buys, seven Holds and three Sells.
